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In Business / College | 2025-07-06

Millions of individuals and groups use reported financial information to assess business organizations in order to make three predictions. Which of the following is of more significance to creditors of an organization?

A. Future hires for an organization.
B. Future cash dividend distributions.
C. Future ability to generate sufficient cash to meet debts as they mature.
D. Future stock market prices for the capital shares issued by the business.

Asked by Crochetmom68

Answer (2)

Creditor analysis focuses on a company's future ability to generate cash to meet debts. This information is more vital to creditors than factors like future hires, cash dividends, or stock prices. Ultimately, liquidity is the key concern for those lending to a business. ;

Answered by GinnyAnswer | 2025-07-06

Creditors are most concerned with a business's future ability to generate sufficient cash to meet debts as they mature (Option C) . This is essential for assessing the company's liquidity and ability to repay financial obligations. Other factors like future hires, cash dividends, and stock prices are less relevant to creditors.
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Answered by Anonymous | 2025-07-08

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